Experts lower edis expectations for Fed rate hike – Forex
The rise in oil prices by almost 15% after the drone attack on Saudi Arabia's oil facilities, as well as the improvement in economic trends in the United States, and primarily increased inflationary pressures, were the reasons for the doubts raised by experts about the adoption the Federal Reserve's decision to cut rates at the end of the september 18 meeting. The traders' assessment of the probability of keeping the rate at the previous level has risen to 34% from 5.4% a week ago and almost zero a month ago. According to experts, the pressure on the members of the Fed will also be exerted by factors such as a significant jump in gasoline prices in the U.S. recently and the approach of U.S. stock indexes to the maximum values. If Saudi Arabia fails to restore production capacity lost in a drone attack in the coming weeks, and other countries fail to make up for the market deficit, then inflation may accelerate, which will hinder continuation of the Fed's monetary easing policy. Signs of easing of tensions in trade relations between the U.S. and China also reduce the possibility of the Fed's decision to raise the rate.